etoro scraps commission fees on stock and ETF trading

By Roger Baird on 6th May 2019

Fintech

The Tel Aviv-based platform said the moves makes it one of the cheapest places to buy and sell stocks in the UK.

etoro scraps commission fees on stock and ETF trading

 

Etoro has scrapped commission fees for buying or selling stocks and exchange traded funds (EFTs) on its trading platform in a bid to boost investor appetite.

The move by the Israeli business, founded in 2007, means it will ditch commission, on stamp duty and management fees.

The Tel Aviv-based platform said the measure could save investors more than 50 per cent on fees with eToro compared with other popular British platforms, making it one of the cheapest places to buy and sell stocks in the UK.

Investors who spent £6,000 on a portfolio of popular British, US and German shares (Lloyds, BP, Tesco, Amazon, Pfizer and Volkswagen) will now pay £107.09 in fees on eToro, compared to £242 in charges with Halifax, according the research body gbi2, commissioned by eToro.

Graham Bentley, founder of gbi2 said: “There is so much variance in costs across the market for buying stocks. No one platform has the same fee structure and often you have to spend hours of research to understand fees. It’s a problem.”

Iqbal Gandham added: “We want to encourage more people to invest in stocks. Going commission free is an important first-step, but it’s not enough.”

He continued: “We need to get people excited about investing. In 1986, the Tell Sid campaign [advertsing for the British Gas privatisation] created a generation of new investors. It  showed that investing is not just for the wealthy. We need to bring back Sid.”

Etoro’s zero commission on stocks and ETFs is only available to UK and European clients of eToro UK Ltd.

Research firm gbi2 conducted its study stocks and shares platforms aimed at UK investors in February and March 2019 which looked at nine platforms -  eToro, Hargreaves Lansdown, IG, Interactive Investor, the Share Centre, Halifax, Saxo, Barclays and AJ Bell.

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